How the Export Volume Is Affected by Determinant Factors in a Developing Country?

Abstract

The export volume can be regarded as one of the important macroeconomic measures of a country development. Although the international trade volume has been increased significantly during the past years, the share of developing countries is still not comparable with the developed ones. This paper analyzes the inter-relations among export and some quantitative and qualitative measures in a developing country, i.e. Iran. The focus is more on the exchange rate volatility. For this purpose, multiple regression analysis was preformed over the period of 1961 to 2001. Our results confirm the important role of pricing and non-pricing variables in stimulating the export of the examined country. Moreover, a negative impact of the external shocks was observed especially for the industrial goods export.